Massachusetts Man Charged with $15.9 Million Ponzi Scheme

Earlier this week, the SEC accused Michael C. Regan and his firm, Regan & Company, of a multi-million dollar Ponzi scheme. The SEC alleges that Regan raised at least $15.9 million from investors by promising returns as high as 20%.

According to a statement by James Clarkson, the Acting Director of the SEC’s New York Regional Office, commented, “Regan lured investors, including family and friends, by touting his investment prowess…He routinely fabricated investment returns to make it appear that he was a successful money manager when in fact he was stealing investor money to pay his own expenses.”

Mr. Regan “promised investors that their money would be pooled into a ‘fund’ that he would invest on their behalf in securities using a conservative, low-risk trading strategy that he claimed was based upon ‘short-term price trends.’”

Mr. Regan also lied about his trading experience, claiming to have an MBA in finance from a major New York institution. In addition, the company is accused of distributing false financial statements and tax forms to cover up Mr. Regan’s fraudulent use of investors’ money for personal expenses. The company is now liable for approximately $8.7 million in “disgorgement and prejudgment interest.”